Price Of 5G Phones Might Go Higher Due To Powerful Chipsets

News

oi-Nageshwara Rao M

By Kunwar Kunal

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Published: Monday, January 27, 2020, 11:05 [IST]

5G technology will soon be taking the world under its influence. Premium smartphone buyers are making sure that the phones must comply with 5G services, before booking them for purchase in the future. But, this time consumers are surely going to get bigger holes in their pockets. As the prices of 5G phones could get higher due to the powerful and intelligent chipsets they will board with.

According to officials, chipsets designed for 5G phones would witness 50% more price figures than the 4G chipsets. The price hikes are because 5G modems and components are very expensive. This could jeopardize the profit margins of smartphone makers such as Xiaomi, Samsung and OnePlus, due to anonymity. Even if we don't go by the reports made by smartphone officials, we have been seeing how Qualcomm and MediaTek's 5G chipsets are getting humongous price hikes than the 4G phones.

Qualcomm hasn't made any official statement regarding the price hikes of 5G phones. On the other hand, MediaTek cleared that its mid-range Dimensity 800 5G chipset is going to be a one-chip solution, preventing OEMs from spending the extra money to get a 5G modem. Explaining about the 5G market scenario, an official said that with a price increase by 50% for chipsets, the price of the phones will be hiked by approximately 60%.

Another challenging factor for potential 5G phone makers is-- even though 5G devices get available for sales, there's no surety how many users will show interest in purchasing them. The prime reason adds to the fact that many countries haven't been yet facilitated with the 5G spectrum. In India, the Telecom minister has announced that the government will set up 5G services either by the end of 2020 or in the early months of 2021.

Makers that will be launching 5G devices are adamant of producing 4G versions as well. As under any circumstance, companies wouldn't want to suffer a revenue crisis, if at all 5G phones don't get an adequate number of buyers. It will be quite important to see how smartphone brands will provide an optimal solution to stop surging price values of 5G phones.

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